By removing reliance on centralised providers, decentralised identity systems aim to offer users greater control over their data, an aim shared by GDPR and eIDAS 2.0. However, decentralisation introduces several challenges in terms of usability, trust, and transparency, as users are tasked with managing their data independently while navigating complex privacy decisions. This paper explores these challenges via a Rapid Review of the state-of-the-art, focusing on digital identity wallets, the primary tool for user interaction in such systems. Eight wallets were analysed for user interaction and privacy attributes, resulting in 21 feature improvements, categorised by privacy attributes, and 16 user stories mapped to the digital identity lifecycle. To address identified gaps, we propose leveraging Transparency-Enhancing Tools (TETs) to implement privacy attributes. TETs enhance usability and transparency, fostering trust and privacy-informed decision-making. This work contributes to informing user-centric wallet design, offering insights to advance decentralised identity adoption and user data control.